Delta Dental has joined a long list of U.S. companies with an announcement of layoffs, combined with a hiring freeze, to trim costs in defense against worsening economic conditions.
In a press released issued January 30, company officials said the layoffs affect about 156 positions, or nearly 4% of the workforce, which is spread across offices in California, Florida, Georgia, Pennsylvania, and Texas. Another 30 currently vacant positions will not be filled, bringing the total workforce reduction to nearly 5% -- almost all in management positions not tied to servicing enrollees, dentists, or client groups.
"We want to be ready in case this economic downturn hasn't yet reached bottom, and make certain we are in good position to emerge more strongly once a recovery begins," stated President and CEO Gary Radine in the press release. "We posted excellent growth and operating results in 2008, but like many insurance companies, we think it prudent to counter reductions in our reserve accounts tied to further declines in the financial markets."
Radine noted that the layoffs and hiring freeze are only two of several steps the company will take to insulate the enterprise against a continued downturn in investment performance.
Nearly 70 of the 156 staff affected by the announcement work at Delta Dental of California's Rancho Cordova campus just outside Sacramento, 36 at the company's headquarters in San Francisco, and 19 at the company's Southern California regional office in Cerritos.
Delta Dental of Pennsylvania plans to lay off 23 people at its Mechanicsburg and New Cumberland offices, and Delta Dental Insurance Company will shed nine of its staff based in Georgia and two employees in Florida.
